Issue Brief: Nearly 1 Million New Jerseyans Face Food Assistance Cut in November

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All SNAP Households Will See a Cut in NovemberNearly 1 million low-income people in New Jersey will see their vital food assistance cut when a temporary boost to the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) expires November 1, new data from the U.S. Department of Agriculture (USDA) show.[1] SNAP benefits will average less than $1.40 per person per meal after the cut.

The cut will affect all of the more than 47 million Americans, including 22 million children, who receive SNAP. This includes 858,000 New Jerseyans, of which 413,000 are children and over a hundred thousand are seniors.[2] For a family of three, that cut will likely amount to $29 a month. That’s a serious loss given SNAP’s already low benefit levels and the very low incomes of SNAP participants – over 80 percent of SNAP households live in poverty.

In New Jersey, the benefit cut through October 2014 will total $90 million, slowing economic growth by reducing overall consumption at a time when the state’s economy continues to struggle with a very slow post-recession recovery. Nationally, the cut will total roughly $5 billion in federal fiscal year 2014 and an additional $6 billion across fiscal years 2015 and 2016.

This will be yet another big blow to struggling families who already have been hit hard by the downturn in the economy and recent state cutbacks in work supports like the Earned Income Tax Credit, NJ FamilyCare and housing. The SNAP reduction will have an even greater impact on most families with children that have incomes below the federal poverty level because they are not eligible for any aid in WorkFirst NJ. The state has not increased the eligibility level in that program in over two decades (it is still $424 a month for a family of three). For these families, SNAP is their only safety net.

Benefit Increase Designed to Boost Economy & Ease Hardship

Congress enacted the benefit increase as part of the 2009 Recovery Act to deliver high “bang-for-the-buck” economic stimulus and ease hardship. The Recovery Act boosted SNAP’s maximum monthly benefits by 13.6 percent beginning in April 2009. It provided that SNAP benefit levels would continue at the new, higher amount until SNAP’s regular annual inflation adjustments to the maximum benefit exceeded the Recovery Act amount. But Congress has since voted to accelerate the sunset of the benefit increase to October 31 of this year.

The scheduled benefit cuts are especially painful in light of the inadequacy of existing benefit levels. In a report issued by the Institute of Medicine and the National Research Council, nutrition experts identified several shortcomings with the current SNAP benefit allotment and recommended evaluating ways of changing the benefit calculation to better ensure that households have enough resources to purchase an adequate diet.[3]

Cuts Will Increase Hardship for Millions

These cuts will likely cause hardship for many SNAP participants, who will include 22 million children in 2014 (10 million of whom live in “deep poverty,” with family incomes below half the poverty line) and 9 million people who are elderly or have a serious disability.

Recession Has Created Greater Need for SNAP in New JerseyIn New Jersey, 858,000 – 445,000 adults and 413,000 children – participate in the program – that’s about 1 in 10 residents. These people live in a total of 426,000 households.[4] That’s more than double the number of residents and households that were participating when the recession officially began in 2007.[5] (For more demographic information on SNAP in New Jersey, see this Fact Sheet from the Center on Budget and Policy Priorities.)

USDA has found that the Recovery Act’s benefit boost reduced the number of households in which one or more persons had to skip meals or otherwise eat less because they lacked money – what USDA calls “very low food security” – by about 500,000 households in 2009.[6] More recent research finds that boosting SNAP benefits during the summer for households with school-aged children who don’t have access to USDA’s summer food program cut very low food security among these households by nearly 20 percent.[7]

Given this research and the inadequacy of current benefit levels, we can reasonably assume that a reduction in SNAP benefit levels of this size will significantly increase the number of poor households that have difficulty affording adequate food this fall.

Evidence Doesn’t Support Argument for Cutting SNAP

The Obama administration and some members of Congress have proposed delaying or cancelling the November 1 cut, but Congress has taken no action on these proposals. Moreover, some in Congress have called for deep cuts in SNAP on top of the scheduled cut. The House of Representatives, which recently defeated legislation that would have cut $20 billion from SNAP – eliminating food assistance for nearly 2 million people – could reconsider these or even deeper cuts in the coming weeks.

Supporters of large SNAP cuts claim that because SNAP enrollment hasn’t declined in tandem with the unemployment rate over the past few years, the program’s enrollment growth in recent years is largely unrelated to the poor economy. In reality, however, the recent reductions in the unemployment rate overstate the improvements in the labor market, as Federal Reserve chair Ben Bernanke has observed.[8] The proportion of the adult population with a job – the employment rate – has barely improved since the recession bottomed out.

And in New Jersey, the situation is worse than at the national level, since our recovery from the recession has been much slower and joblessness has been much higher. It’s no surprise that more and more families and individuals need to turn to the safety net for food assistance.

In addition, the number of unemployed workers not receiving unemployment benefits – the group of the unemployed most likely to qualify for SNAP because they have neither wages nor unemployment checks – has continued to grow and is higher now than at the bottom of the recession. Also, the historical record shows that declines in poverty and SNAP enrollment typically lag behind declines in the unemployment rate following recessions.

[1]For more detail on the scheduled cut, see Stacy Dean and Dorothy Rosenbaum, “SNAP Benefits Will Be Cut for All Participants in November 2013,” Center on Budget and Policy Priorities, August 2013.
[2]Current participation statistics for New Jersey are based on the 2013 average to date (through May); the national figures are for a typical, or average, month in federal fiscal year 2014. Both are rounded to the nearest thousand.
[3]Institute of Medicine and National Research Council, Supplemental Nutrition Assistance Program: Examining the Evidence to Define Benefit Adequacy, The National Academy Press, 2013.
[4]New Jersey Department of Human Services, Division of Family Development, Current Program Statistics, May 2013.
[5]Using the 2007 average participation statistics from New Jersey Department of Human Services, Division of Family Development, Current Program Statistics, December 2007.
[6]Mark Nord and Mark Prell, “Food Security of SNAP Recipients Improved Following the 2009 Stimulus Package,” Amber Waves, 9(2), June 2011.
[7]Evaluation of the Impact of Enhancement Demonstrations on Participation in the Summer Food Service Program (SFSP): FY 2011; FNS, USDA, November 2012.
[8]Bernanke Talks: A Conversation at the NBER,” Real Time Economics, Wall Street Journal, July 2013.